Commodities are leading the global economic recovery. International demand for grains, dairy and forestry products is extremely strong – driven primarily by increased demand from China, ANZ Bank economists say in their latest NZ Agri Focus.
Dairy markets shot up in March, driven by strong buying from China, among challenging conditions to deliver product to market. Since then prices have stabilised near current levels, encouragingly, despite more product being added to the GlobalDairyTrade sales channel.
The recent strength in global markets, combined with a slight softening in the NZ dollar. has been supportive of farmgate milk prices.
“We are forecasting $7.70/kg MS for this season and $7.30/kg MS for next season,” the report says.
If cumulatively it has been a remarkably good season for the dairy industry, results have been more varied for the processing companies and for individual farmers.
Synlait and A2 Milk, for example, have not found the going easy, given the impact of Covid-19 on the daigou trade with China.
But Fonterra – as the principal player – has got back its mojo as industry leader, with its finances in much better shape under CEO Miles Hurrell’s leadership than under the previous regime. Continue reading “O’Connor opts for a ban on exports of live beasts (rather than tighter regulations) to demonstrate our high animal-welfare standards”